How Online Payment Fees Work on Posa (Kenya)
For businesses in Kenya, your Posa online store uses Flutterwave. Here is how processing fees apply to successful webshop payments, payouts, and your subscription plan.
When customers pay on your Posa online store (webshop) in Kenya, payments are processed by Flutterwave. Fees apply only on successful transactions. These fees are for online webshop payments only and do not apply to in-store POS transactions.
Important:
The Posa online payment service fee is based on your current business subscription plan. Flutterwave’s channel rates, transfer fees, and VAT on Flutterwave fees are set by Flutterwave and can change—always refer to their official Kenya pricing and VAT guide for the latest details.
1. Collections (customer pays on your webshop)
Flutterwave charges one processing rate per successful payment. The rate depends on how your customer pays. You are charged the rate that matches that payment method—not every rate on one transaction.
Local transactions — cards
Mastercard & Visa (Kenya-issued)
3.2%
per successful transaction
Local transactions — wallets & mobile money
Including M-PESA and other local wallets
2.9%
per successful transaction
International transactions — cards
Mastercard & Visa from outside Kenya
4.8%
per successful transaction
- Accept payments from anywhere in the world
- International cards are charged and settled in your local currency (KES) by default
Value Added Tax (VAT) on Flutterwave fees — Kenya
Flutterwave charges VAT on transaction fees (and on transfer fees where applicable). For Kenya, the VAT rate is 14.00% on Flutterwave’s fee amounts (currency: KES).
VAT is added to Flutterwave’s fee and is typically borne by the merchant; it reduces your net settlement compared with the fee alone. VAT cannot be passed to your customers like a separate checkout line in the same way as optional transaction-fee settings—see Flutterwave’s VAT for merchants.
Posa online payment service fee (by plan)
Posa’s share is configured as a percentage of each successful webshop payment (Flutterwave subaccount split). Amounts are in KES.
| Your Posa plan | Posa fee (Kenya / Flutterwave) |
|---|---|
| Starter | 2% per successful transaction |
| Plus | 1.5% per successful transaction |
| Premium | 1% per successful transaction |
2. Illustrative example (M-PESA, KES)
The steps below are illustrative using Flutterwave’s published 2.9% local mobile-money rate and 14% VAT on fees. Your dashboard may show slightly different labels or rounding.
Order basis
Cart KES 1,000.00 → order total KES 1,000.00 (before any customer-facing surcharge).
Step 1 — Flutterwave processing (2.9%)
On a KES 1,000 M-PESA payment, Flutterwave’s collection fee at 2.9% is KES 29.00 (depending on your fee settings, this may appear as a customer surcharge or a merchant deduction).
Step 2 — VAT on the Flutterwave fee (14%)
14% VAT (Kenya) on the KES 29.00 fee ≈ KES 4.06, deducted from merchant settlement per Flutterwave’s Kenya VAT rules.
Step 3 — Posa plan split (example: Premium)
After Flutterwave settles the net amount to your sub-account, Posa Premium takes 1% of the successful payment as the platform share; you keep 99% of the split base (same pattern as other Flutterwave countries: Starter 2% / 98%, Plus 1.5% / 98.5%, Premium 1% / 99%).
3. Transfers & payouts (Flutterwave → your bank / M-PESA)
When Flutterwave pays out collected funds to you, transfer pricing is separate from collection rates. Published Kenya transfer fees (excluding VAT):
- Transfer to bank accounts: KES 100 per transfer
- Transfer to mobile money: KES 100 per transfer
Flutterwave notes that pricing excludes VAT and other applicable local taxes; VAT at 14% can also apply to transfer fees in Kenya.
4. Official Flutterwave resources
5. Payout and settlement
- Successful online payments are settled according to Flutterwave’s Kenya rules
- Settlement timing is shown in your Flutterwave dashboard (often next business day for local payments; international timelines may vary)
- No manual withdrawal is required from Posa for standard settlements
6. Things to know
- These fees apply only to your Posa online store (webshop) in Kenya
- In-store POS charges are separate
- Your Posa webshop fee rate updates if you change subscription plan
- Use your Posa dashboard transaction history for per-order breakdowns